A Complete Guide to Gujarat Profession

If you are working in Gujarat or running a business there, you might have heard about something called Profession Tax. It’s a small amount of tax collected by the state government from professionals, employees, and business owners. The money collected is used for the development and welfare of the state.

In this blog, we’ll explain everything you need to know about Gujarat Profession Tax in very simple words. We’ll cover:

• Slab of Profession Tax
• PTEC Payment
• PTRC Payment
• PTRC Return
• Due Dates for PTRC and PTEC

What is Profession Tax?

Profession Tax is a tax that the State Government charges on income earned by professionals and salaried individuals. In Gujarat, this tax is governed by the Gujarat State Tax on Professions, Trades, Callings, and Employments Act, 1976.

This tax is mandatory, and it applies to:

• Salaried employees
• Business owners
• Professionals like doctors, lawyers, CA, engineers, etc.

Slab of Profession Tax in Gujarat

The amount of profession tax to be paid depends on how much income a person earns. Gujarat has set monthly income slabs for calculating this tax.

What is PTEC and PTRC?

In Gujarat, Profession Tax is paid under two types of registrations:
a) PTEC – Professional Tax Enrolment Certificate

Taken by business owners, self-employed professionals, or anyone running a trade.

This is for the person who owns the business or is self-employed.

You pay ₹2,500 per year as profession tax under PTEC.

b) PTRC – Professional Tax Registration Certificate

• Taken by companies, firms, or any employer who has salaried employees.
• This allows the employer to deduct and pay profession tax on behalf of employees.
• The tax is paid every month based on the employee’s salary slab.

How to Make PTEC Payment?

If you are an employer and you have employees working under you, you need to:

• Deduct profession tax from their salary every month as per the slab.
• Pay the deducted amount to the government on time.

Steps for PTRC Payment:

• Step 1: Register for PTRC on the Gujarat Profession Tax portal and get your PTRC number.
• Step 2: Every month, calculate the profession tax for each employee using the slab.
• Step 3: Login to the Gujarat Tax Portal.
• Step 4: Select PTRC Payment option, enter the details of employees and the amount.
• Step 5: Make the payment online and download the receipt.

How to File PTRC Return?

Filing a return means submitting a report to the government showing how much profession tax you have deducted and paid for your employees.

In Gujarat, if your tax liability is more than ₹1,000 per year, you must file monthly returns.

Steps to File PTRC Return:

1. Go to https://ctax.gujarat.gov.in
2. Login with your PTRC credentials.
3. Click on PTRC Return Filing.
4. Enter the required details like:
   • Number of employees
   • Amount deducted
   • Amount paid
5. Submit the return online.

Make sure your payment is made before filing the return.

Due Dates for PTRC and PTEC

Timely payment is very important to avoid penalties.

PTRC (For Employers):

If you are an employer who needs to deduct and pay profession tax for employees:

• Monthly Payment & Return:
  • Due Date: 15th of the next month
  • Example: For April, payment and return must be done by 15th May.
    
• Annual PTRC Return:
  If the tax liability is ₹1,000 or less, then:
  • Only one return is required in a year.
  • Due Date: 30th April of the next financial year

PTEC (For Business Owners & Professionals):

• Annual tax payment of ₹2,500.
• Due Date: 31st March every year.

Late payment can attract:

• Interest at the rate of 18% per annum.
• Penalty of ₹1,000 or more depending on delay.

So, it’s better to mark these due dates and make timely payments.

Why is Profession Tax Important?

You might be thinking – it’s a small amount, so why should I bother?

Well, paying profession tax is not optional. It is mandatory under law, and failing to pay can result in:

• Penalties
• Interest
• Legal action from tax department
• Problems while applying for government tenders or licenses

Also, if you are a salaried person, your employer must deduct and pay it. But if you are self-employed, it’s your responsibility.

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